Key Insights

• Significant control over Shijiazhuang Tonhe Electronics TechnologiesLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 13 investors have a majority stake in the company with 50% ownership
• Insiders own 45% of Shijiazhuang Tonhe Electronics TechnologiesLtd

A look at the shareholders of Shijiazhuang Tonhe Electronics Technologies Co.,Ltd. (SZSE:300491) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that benefitted the most from last week's CN¥374m market cap gain, insiders too had a 45% share in those profits.

In the chart below, we zoom in on the different ownership groups of Shijiazhuang Tonhe Electronics TechnologiesLtd.

What Does The Institutional Ownership Tell Us About Shijiazhuang Tonhe Electronics TechnologiesLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Shijiazhuang Tonhe Electronics TechnologiesLtd. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Shijiazhuang Tonhe Electronics TechnologiesLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Shijiazhuang Tonhe Electronics TechnologiesLtd is not owned by hedge funds. Tong Jia is currently the company's largest shareholder with 15% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 14% and 4.5%, of the shares outstanding, respectively.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Shijiazhuang Tonhe Electronics TechnologiesLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Shijiazhuang Tonhe Electronics Technologies Co.,Ltd.. It has a market capitalization of just CN¥3.2b, and insiders have CN¥1.4b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in Shijiazhuang Tonhe Electronics TechnologiesLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shijiazhuang Tonhe Electronics TechnologiesLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Shijiazhuang Tonhe Electronics TechnologiesLtd that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.